Disseminated on behalf of Surge Battery Metals Inc.

The global race for electric vehicles (EVs) and renewable energy storage is accelerating fast. But beyond the hype around resource discoveries, a quieter and more critical race is taking shape, the race for lithium purity. While many lithium developers highlight their large deposits, what truly matters to EV and battery manufacturers is the ability to deliver ultra-pure, battery-grade lithium.

Surge Battery Metals (TSXV: NILI, OTC: NILIF) is emerging as a leader in this next phase of the lithium story. The company is not just measuring tons in the ground, it is proving its ability to produce 99.9% pure lithium carbonate, the key ingredient for advanced EV batteries. With its Nevada North Lithium Project (NNLP), NILI is positioning itself to supply premium-quality lithium directly to top-tier EV and energy storage manufacturers.

The company also achieved a significant milestone this September. It signed an LOI with Evolution Mining (ASX: EVN) to form a joint venture at NNLP. Under the agreement, Surge retains 77% and Evolution starts with 23%, funding up to C$10 million for the Preliminary Feasibility Study. This investment could increase Evolution’s stake to 32.5%, while Surge remains as project manager.

In addition, Evolution contributes 75% of its mineral rights on 880 acres of private land, plus 21,000 more acres of highly prospective ground. This significantly expands the project’s footprint.

Moving forward, the JV will focus on advancing the Pre-Feasibility Study, building directly on the strong 2025 PEA results and setting the stage for the next development phase.

Why Purity Matters: The Technical Case for 99.9%

In the battery world, purity is not just a technical metric; it is the difference between success and failure. EV makers and battery cell producers need lithium carbonate and hydroxide with purity levels of at least 99.5%. Increasingly, the bar is being raised to 99.9% or higher.

Even trace amounts of iron, magnesium, or boron can cause major problems. These impurities shorten battery life, reduce energy density, and increase safety risks. As automakers shift to more advanced chemistries like NMC (nickel-manganese-cobalt) and solid-state batteries, the demand for cleaner, high-spec lithium becomes non-negotiable. However, NMC batteries had a drawback. They depended on costly and volatile metals like nickel and cobalt.

And thus, LFP batteries emerged as a game-changer.

• ALSO SEE: America’s Lithium Gap: How Surge Battery Metals Could Bridge the Supply Shortfall

LFP Batteries Are Now Reshaping EVs

LFP, or lithium iron phosphate batteries, remove nickel and cobalt entirely, using iron and phosphate instead. These materials are cheaper, safer, and easier to source. LFP batteries also last longer, charge faster, and handle heat better, making them ideal for affordable, large-scale EV production.

• In 2022, LFP accounted for 37% of global EV battery chemistry. By 2024, it reached nearly 50%, and the trend continues.

For lithium investors, this matters. LFP relies heavily on lithium carbonate, the purest, most in-demand form of lithium. With nickel and cobalt out, lithium becomes central, tightening markets as more EV makers adopt LFP

High-purity lithium does more than meet technical standards. It also commands higher prices and long-term supply contracts. Automakers and energy storage providers prefer suppliers who can consistently deliver premium-quality lithium while maintaining environmental responsibility. For them, reliability, repeatability, and sustainability are just as important as cost.

The Nevada North Lithium Project: Scale with Substance

NILI’s flagship Nevada North Lithium Project (NNLP) combines resource scale with exceptional quality. Located in Nevada, a region known for its lithium-rich claystone deposits, NNLP has an inferred resource of 8.65 million tonnes of lithium carbonate equivalent (LCE), grading 2,955 ppm lithium at a 1,250 ppm cutoff.

These numbers put it among the most promising new lithium projects in North America. But NILI’s true edge comes from its ability to turn that resource into battery-grade lithium carbonate. Laboratory and pilot-scale metallurgical tests have already confirmed purity levels at or above 99.9%, far exceeding typical chemical-grade standards.

According to the company’s Preliminary Economic Assessment (PEA), completed by M3 Engineering & Technology and Independent Mining Consultants, the project is designed for scale and efficiency.

Key highlights include:

• Annual output: 86,300 tonnes of LCE, expandable to 109,100 tonnes at full production.
• Recovery rate: Averaging 82.8%, thanks to advanced leaching and purification processes.
• Operating cost: As low as $5,097 per tonne LCE, ensuring competitive margins.
• Mine life: Estimated at 42 years, based on a conventional open-pit operation.

This combination of high-grade resource and proven processing ability gives NNLP a powerful advantage in a market shifting toward quality over quantity.

Inside NILI’s Metallurgical Advantage

Metallurgical testing is where NILI truly sets itself apart. Turning claystone into battery-grade lithium requires technical mastery and process control. Surge’s team has developed a refined purification flowsheet tailored to Nevada’s unique claystone composition.

Recent pilot-scale trials achieved lithium carbonate purity of 99.9% or higher, meeting or exceeding international benchmarks. These tests also showed strong impurity control, particularly for metals like iron and boron, which are critical for EV battery safety.

Mr. Greg Reimer, Chief Executive Officer, and Director commented,

“Beyond our initial metallurgical and analytical works in 2023 to estimate acid consumption and identify the clay types, we are very pleased to have taken the next step and have passed the important ‘proof of concept’ trial showing that the clays of our Nevada North Lithium Project can be used to produce lithium carbonate exceeding 99% purity. In doing so, we have managed the technological risk sufficient to warrant the next step, which will include upsizing the laboratory trials to build a sufficient inventory of technical grade lithium carbonate that we can purify to demonstrate if the NNLP clay is a suitable source to produce battery-grade lithium carbonate.”

NILI’s process is both efficient and sustainable. By optimizing reagent use and reducing energy consumption, the company supports strong environmental, social, and governance (ESG) goals while keeping costs low.

A Step-by-Step Look at NILI’s Lithium Purification

Here’s a simplified look at NILI’s five-step purification process that converts raw claystone into 99.9% pure lithium carbonate:

1. Ore Preparation and Leaching: The lithium-rich claystone is mined, milled, and treated with acid to dissolve lithium from the rock.
2. Solid-Liquid Separation: The resulting slurry is filtered to isolate a lithium-rich solution from unwanted solids.
3. Selective Impurity Removal: Using precipitation, ion-exchange, and solvent extraction, key impurities like magnesium, calcium, and boron are removed.
4. Lithium Carbonate Precipitation: The purified solution reacts with carbonate sources such as soda ash to form lithium carbonate crystals.
5. Final Polishing and Quality Control: The crystals are dried, rechecked for purity, and recirculated if needed to achieve consistent 99.9% results.

This closed-loop design maximizes recovery while minimizing waste, an important feature for both efficiency and sustainability.

Commercial Significance: Why OEMs Are Watching Closely

As the lithium market evolves, a clear divide is forming. Companies capable of producing high-purity, battery-grade material are securing premium contracts and long-term partnerships. Others producing lower-grade lithium face downward pricing pressure and limited buyers.

Energy Storage Systems (ESS) are now becoming a major swing factor in lithium demand. After what looked like a soft stretch for lithium prices, ESS battery shipments have shown massive growth year-to-date. Updated J.P. Morgan forecasts increased ESS shipments +50% for this year and +43% for next year, with ESS now projected to represent 30% of total lithium demand by 2026, rising to 36% by 2030.

By 2030, total lithium demand is expected to reach ~2.8 Mt LCE, aligning with the consensus range referenced by Albemarle. Meanwhile, global EV demand is forecast to grow 3–5% annually between 2025–2030 — making ESS the category that prevents a persistent market surplus and tightens supply.

At the same time, the company aligns with North American supply chain goals, offering secure, ESG-compliant lithium production close to home. With the U.S. and Canadian governments pushing for “friendshoring” of strategic minerals, NILI’s Nevada-based project fits perfectly into the policy framework for domestic critical mineral supply.

By focusing on purity and process control, NILI aims not only to sell lithium but to become a trusted technology and supply chain partner for OEMs seeking quality assurance and long-term reliability.

For Investors: Why Processing Capability Matters

For investors, NILI’s story goes beyond having a large lithium deposit. The real value lies in its processing expertise. Producing 99.9% battery-grade lithium at a commercial scale requires deep technical know-how, efficient design, and capital discipline.

NILI’s PEA shows impressive financial metrics:

• After-tax NPV: US$9.21 billion (at 8% discount).
• Internal Rate of Return (IRR): 22.8%.
• Payback period: Less than five years.
• High operating margins, supported by strong resource grades and cost-effective processing.

These numbers underline a vital message: processing quality drives profitability. Investors looking for long-term exposure to the clean energy transition should note that companies capable of producing high-purity lithium will capture premium market share and valuation upside.

The Purity Premium in the Lithium Race

As the global energy transition speeds up, success will depend not just on who can find lithium but on who can refine it to perfection. Surge Battery Metals is proving it can deliver battery-grade lithium carbonate with 99.9% purity, meeting the toughest technical and commercial standards in the industry.

And that is a powerful differentiator for investors. NILI’s combination of resource scale, refining precision, and strategic positioning in Nevada gives it a strong foundation to become a leading supplier to the North American EV and energy storage markets.

In the new lithium economy, purity equals power, and NILI is setting the benchmark for both.

• FURTHER READING: Nevada Lithium Hub: Why Surge Battery Metals Holds the Key to U.S. EV Independence

DISCLAIMER 

New Era Publishing Inc. and/or CarbonCredits.com (“We” or “Us”) are not securities dealers or brokers, investment advisers, or financial advisers, and you should not rely on the information herein as investment advice. Surge Battery Metals Inc. (“Company”) made a one-time payment of $50,000 to provide marketing services for a term of two months. None of the owners, members, directors, or employees of New Era Publishing Inc. and/or CarbonCredits.com currently hold, or have any beneficial ownership in, any shares, stocks, or options of the companies mentioned.

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It is our policy that the information contained in this profile was provided by the company, extracted from SEDAR+ and SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee them.

CAUTIONARY STATEMENT AND FORWARD-LOOKING INFORMATION

Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate,” “expect,” “estimate,” “forecast,” “plan,” and similar expressions suggesting future outcomes or events. Forward-looking information is based on current expectations of management; however, it is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated.

These factors include, without limitation, statements relating to the Company’s exploration and development plans, the potential of its mineral projects, financing activities, regulatory approvals, market conditions, and future objectives. Forward-looking information involves numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking information. These risks and uncertainties include, among other things, market volatility, the state of financial markets for the Company’s securities, fluctuations in commodity prices, operational challenges, and changes in business plans.

Forward-looking information is based on several key expectations and assumptions, including, without limitation, that the Company will continue with its stated business objectives and will be able to raise additional capital as required. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information. Additional information about risks and uncertainties is contained in the Company’s management’s discussion and analysis and annual information form for the year ended December 31, 2024, copies of which are available on SEDAR+ at www.sedarplus.ca.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances except as may be required by applicable law.

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